Fmr. BOJ Board Member: I Hope Ueda Would Normalize Policy Soon

The video discusses the implications of prolonged easy monetary policy, focusing on its side effects on market function and financial stability. It highlights current inflation concerns, with expectations of changes in the inflation rate. The Bank of Japan's (BOJ) quarterly report and price forecast are analyzed, suggesting potential market impacts. The discussion extends to yield curve control, its challenges, and the need for policy adjustments. Future monetary policy changes, including interest rate adjustments, are considered to mitigate side effects while maintaining economic stability.

What are some side effects of excessively easy monetary policy mentioned in the video?

• Improved market function

• Increased financial stability

• Undermining market function

• Higher profits for financial institutions

What is the current state of inflation according to the video?

• Well above 2%

• Below 1%

• Negative

• Exactly 2%

What is the expected inflation rate for 2025 as mentioned in the video?

• Exactly 2.5%

• Below 1%

• Above 3%

• Between 1.5% to 2%

What is one of the largest problems with yield curve control (YCC) discussed in the video?

• Low inflation

• Excessive government bond supply

• Lack of government bonds

• High interest rates

What strategy does the BOJ plan to use to maintain monetary easing while addressing side effects?

• Raise inflation targets

• Keep the negative rate negative

• Increase interest rates to 5%

• Eliminate yield curve control